Life insurance dominated by the large banking groups

Money Management’s Mike Taylor recently commented on what a fundamental impact industry consolidation has had on the Australian life insurance industry.

According to analysis published by Credit Suisse, Australia’s top ten largest life insurance providers currently take up more than 95 per cent of annual in-force premiums.

“What is more, the analysis suggested that this narrow focus of control would be strengthened in the event of the further consolidation that would flow from National Australia Bank taking AXA Asia Pacific.”

Credit Suisse said the life insurance market continued to be dominated by the big banks, with the four major banking groups, Westpac, Commonwealth, ANZ and NAB controlling about 50 per cent of the market. The acquisition of Aviva by NAB and ING by ANZ had cemented this reality.

The analysis said following the demerger of the Tower Group, TAL had become the only listed financial institution with a pure exposure to the Australian life insurance industry.

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